Costa Rica negotiates terms for joining Petrocaribe

By joining the energy accord known as Petrocaribe, the country would be buying more than 20,000 barrels of petroleum per day from Venezuela.

The increase in the purchase of crude oil will depend greatly on the expansion of the credit and payment terms by Venezuela before negotiations are concluded. This request should be sent in the next few days in an official note to Venezuela.

Costa Rica will this week ask to be admitted to Petrocaribe, under which Venezuela offers financing of 60 percent of the nation's oil imports over 25 years, with two years of grace and a fixed interest rate of 1 percent.

These conditions apply when crude costs more than $100 a barrel, as it does at the moment. The remaining 40 percent of the import bill has to be paid within 90 days without interest.

The drop in petroleum prices does not lessen Arias' intention to join PetroCaribe.

The PetroCaribe project created by Hugo Chaves in 2005 known as the "Alba energy platform" is about to gain a new member. Costa Rica has formally asked to join inspired by the payment terms that Caracas offers its 18 members in Central America and the Caribbean.

Guatemala President Álvaro Colom has signed an agreement which would make Guatemala one of the recipients of energy from the regional initiative PetroCaribe.

The nation will receive a quota of 20,000 barrels of oil per day, for which 40 percent of the invoice must be paid within 90 days and 60 percent will be financed over 23 years, plus a two-year grace period, at an interest rate of one percent per year.

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